Arsenal have released the half-year financial results for the 6 months ending November 30th 2016.
Some of the key points from the release include:
- Turnover from football increased to £191.1m from £158m in 2015, an increase of just over 20%, primarily down to the new television deal which accounted for £25m of that increase.
- Broadcast now accounts for 45% of football revenue.
- Commercial and retail revenue increased by 5% to £57.9m.
- Investment in the playing squad saw the amortisation charge on player registrations increase to £36m from £29.2m in 2015
- Cash reserves, distinct from available transfer funds, stand at £100.5m
- Arsenal Holdings PLC made an overall profit before tax of £12.6m against a loss of £6.2m in 2015.
In the report, Chairman Sir Chips Keswick said, “The financial results for the first half of the year are robust. As expected increased Premier League broadcasting revenues have had a direct impact on player costs both in terms of transfer prices and player wage demands.
“We have invested in out own playing squad at record levels. It has also been exciting to see more young players emerge from our Academy. We are focused on producing a positive and exciting closing run and with the support of our fans, I believe together we can achieve a successful and memorable end to the season.
“We are looking forward to another exciting finish to the season. The Premier League season has been intensely competitive across the top six positions. At the time of writing, we sit fourth place in the league and, with thirteen games remaining, there is everything to play for.
“Everyone, including, Arsene, our players, board and staff share our fans’ disappointment at our first leg result against Bayern Munich but we will approach the second leg with professionalism and a desire to reclaim pride.
“Unity has always been one of Arsenal’s strengths as a club. We are very focused on producing a positive and exciting closing run and with the support of our fans, I believe together we can achieve a successful and memorable end to the season.”
And on player contracts the use of the word ‘rationally’ might make some people sit up and take notice.
“Higher player wages are, once again, the single largest contributory factor in the club’s increased operating costs,” he said.
“Furthermore, in terms of transfers, we have invested at record levels, adding £110.5 million to the cost of player registrations. As well as bringing Granit Xhaka, Rob Holding, Shkodran Mustafi and Lucas Perez to the Club we have continued to invest in the retention of key players.
“Francis Coquelin, Hector Bellerin, Laurent Koscielny and Olivier Giroud have signed new contracts whilst we have also taken up the options to extend the contracts of Club captain Per Mertesacker and Santi Cazorla.
“Further work is required in the area of contract renewals and we will continue to invest rationally in our squad retention as we move forward.”